It’s a round about recognition of the agency problem in the medical industry.

If people chose and directly paid for there own medical bills and insurance then extra fees and extra diagnostics would be born directly by the person paying for it, who would have the freedom to make other choices, like picking insurance providers who were better at preventing it.

At least that’s an argument you can reasonably make. I’m not sure it would hold up in practice given how different medicine is from other markets.

The health insurance industry drives highly increased administrative costs - costs which the insurance companies are happy to foist off onto non insurance channels?